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One of the ways a seller can get the most money out of their home when they sell, especially during a bidding war situation is when a buyer gives an appraisal guarantee. And what this means is, should the home not appraise for the offer price, the buyer is willing to pay a certain amount of money out of their own pocket to cover the shortfall of the appraisal. For example, a home is listed for 500,000.
The buyer says, “hey, I really want the home. I want to get it besides the other people that are offering an offer…” So they offer $550,000 and they’re saying, well, if it doesn’t appraise, I’ll pay up to $30,000 out of my own pocket in order to still get the home at the price close to what I’ve offered you. So if the home appraised for 550,000 buyer doesn’t pay anything out of pocket, if it appraised for as low as 500,000, they’re going to pay that 30,000, and the seller will get $530,000 for their home them. So if you have any questions, you can comment below. Please share this with anyone you think it would be helpful to. And as always close with Patrice.